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The Fed Is Already Transparent

The central bank doesn't need more political interference as it decides when to move against inflation.

By

Anil K. Kashyap And Frederic S. Mishkin

Updated Nov. 9, 2009 7:28 p.m. ET

Under the banner of increasing Federal Reserve transparency, Congressman Ron Paul has sponsored a bill that would subject the Fed's monetary policies to an audit by the Government Accountability Office (GAO). The bill is a veiled attempt to undermine the Fed's independence. If it passes, it will cripple policy making—particularly when it comes to inflation.

It is completely appropriate to hold the Fed accountable for its decisions. But the Paul bill, H.R. 1207, will only produce redundancies: Congress already has multiple...